WEST PALM BEACH, FL (www.hedgeco.net) – Mike Donatelli, a former manager with Soros Funds has launched his own hedge fund. The new fund is called EAC Partners, and was put together with six otherpartners according to the report. Donatelli managed a merger arbitrage portfolio at Soros Fund Management for four years; he also oversaw a merger arbitrage portfolio at SAC Capital, themultibillion-dollar hedge fund firm managed by Steven Cohen. Donatelli also ran a proprietary merger arbitrage portfolio for Swiss bank UBS, before branching out on his own.
The new strategy will concentrate trading on Merger Arbitrage, a strategy which Donatelli has been involved with in the past 15 years. The new fund will also trade high-yield and distressed securities. The Merger arbitrage strategy trades stocks of companies and firms involved with special situations such as mergers and acquisitions.
Lately there have been surges in mergers and other activities which have lifted the profitability of such strategies in recent months. Donatelli said, “Deal activity has picked up and we think that will continue,” according to him.
At EAC Partners Fund, Donatelli is working with two other expert analysts in merger arbitrage, and yet another analyst concentrating on distressed and high yield debt. Two traders have been recruited by EAC Partners, in additional to a chief financial officer. Minimum investment requirements as well as the fee structure were not immediately provided.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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